GS-2:Important International Institutions, agencies and fora – their Structure, Mandate.

In News: Building blocks: On the 16th BRICS Summit in Kazan

2.Examine the significance of BRICS as an emerging coalition of economies in the context of global geopolitics. How does the expansion of BRICS reflect a shift towards a multipolar world order?

The recent expansion of BRICS to include countries like Saudi Arabia, Iran, Egypt, and the UAE marks a pivotal shift in the global geopolitical landscape, solidifying the BRICS grouping as a significant force in the global arena.

Significance of BRICS

1. Counterbalance to western dominance
   ● The expansion of BRICS aims to counter Western influence and institutions like the G7 and IMF, advocating for a more equitable global governance structure that represents the Global South.
2. Economic leverage
   ● BRICS accounts for approximately 42% of the world’s population and 36% of global GDP, enabling it to challenge existing financial norms and promote local currency trade among member states.
3. Enhanced cooperation on global issues
   ● The coalition can enhance cooperation on critical issues such as energy security and climate change, leveraging the resources and technological capabilities of its member states.
4. Reforming global governance
   ● BRICS advocates for reforms in multilateral institutions like the UNSC to provide greater representation for emerging economies, reflecting current geopolitical realities

Implications for a multipolar world order:
The expansion of BRICS reflects a shift towards a multipolar world order with several implications:

1. Increased global cooperation: BRICS fosters collaboration among emerging economies, promoting diverse perspectives in international relations.
2. Challenges to existing norms: The coalition challenges the status quo established by Western powers, potentially increasing tensions over competing interests.
3. Alternatives to the prevailing international institutions: Promoting interbank cooperation mechanisms, a grain exchange, a cross-border payment system and growth of the BRICS New Development Bank, indicate the intent to seek alternatives to the prevailing international governance structures.
4. Opportunities for developing nations: BRICS provides developing countries with an alternative platform to engage with global issues effectively.
5. Shifts in trade dynamics: The rise of BRICS can lead to shifts in global trade dynamics, encouraging trade agreements that prioritise intra-BRICS commerce over traditional Western markets.

Challenges:
Internal divisions among member states may complicate consensus-building efforts within the coalition. However BRICS grouping also affords its members a stage to discuss thorny bilateral issues between members, including Iran-UAE, India-China and Egypt-Ethiopia.

Through expansion and collective economic strength, BRICS is poised to advocate for reforms in global governance while enhancing cooperation among its members on critical issues.

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Source:

https://www.thehindu.com/opinion/editorial/%E2%80%8Bbuilding-blocks-on-the-16th-brics-summit-in-kazan/article68791862.ece